Investopedia Markets News (all except PF)

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Regional bank stocks plunged after Zions said it was taking a $50 million third-quarter charge-off to cover a pair of loans taken out by borrowers facing legal actions.
Key Takeaways

• Regional bank stocks lost ground after a pair of banks disclosed issues with bad and fraudulent loans, while data storage stocks gained in the wake of price-target hikes from analysts.
• Fifth Third Bancorp and Regions Financial were among the S&P 500's biggest decliners after Zions Bancorporation warned of a multimillion-dollar charge-off to cover bad loans and Western Alliance said it was dealing with a fraudulent borrower.
• Micron Technology, Western Digital, and Seagate Technology powered higher after Wall Street analysts highlighted strong AI-driven demand for memory and data storage.

Reports of elevated loan losses from regional banks weighed on the sector, while expectations of AI-driven growth helped lift shares of companies in the data storage and memory chip businesses.

Major U.S. equities indexes finished lower after a volatile session as U.S.-China trade tensions remained in focus and investors digested a slew of earnings reports. The Nasdaq slipped 0.5%, the S&P 500 fell 0.6%, and the Dow dropped 0.7%. See here for more reporting from Investopedia on the day's market moves.

Fifth Third Bancorp (FITB) and Regions Financial (RF) were among the S&P 500's biggest decliners, with both stocks sliding close to 6% after Zions Bancorporation (ZION) said it was taking a $50 million third-quarter charge-off to cover a pair of bad loans, and Western Alliance (WAL) said it was dealing with a fraudulent borrower. Western Alliance shares fell close to 11% and Zions plunged 13%.

Kenvue (KVUE) shares also sank about 13%. A lawsuit filed this week in the United Kingdom claimed that the consumer health company's baby powder caused cancer and other diseases. Kenvue completed its spin-off in August 2023 from Johnson & Johnson (JNJ), which has been ordered to pay $966 million in damages after a jury in the U.S. found the company liable for similar claims.

Shares of cybersecurity firm F5 (FFIV) plummeted nearly 11%. The provider of application delivery and security services said Wednesday that it had been the target of a major cyberattack, which it attributed to a nation-state actor.

The S&P 500's top performance Thursday came from shares of J.B. Hunt Transport Services (JBHT), which motored 22% higher after the logistics company topped third-quarter sales and profit estimates. Improvements in efficiency and network balance helped drive growth in the company's intermodal business, which combines rail and truck services.

Micron Technology (MU) shares climbed close to 6% after a pair of price-target hikes from analysts at Citi and UBS, saying they expect the memory chipmaker to benefit from supply shortages in the face of booming AI demand.

Western Digital (WDC) and Seagate Technology (STX) also surged, adding roughly 5% and 3%, respectively, after Wedbush raised its targets for the stocks, suggesting data storage supply could be tight for years, supporting higher prices and margins for the hard drive makers.

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Shares of Micron Technology have more than doubled in value this year
Key Takeaways

• Micron Technology, Western Digital, and Seagate Technology saw their stocks climb Thursday afternoon in the wake of price-target hikes from Wall Street analysts, who said growing AI demand and persistent shortages of data storage hardware could benefit the companies.
• The gains came on a down day for the tech sector and U.S. stocks broadly.

Growing demand for artificial intelligence and persistent shortages of memory and data storage solutions could mean bigger gains for providers of the hardware, according to Wall Street AI bulls.

Micron Technology's (MU) stock surged to an all-time high Thursday, boosted by price-target hikes from analysts at Citi and UBS. Hard-drive makers Western Digital (WDC) and Seagate Technology (STX) saw their stocks climb after price-target boosts from Wedbush.

The trio were among the leading gainers in the S&P 500 Thursday afternoon, a bright spot in a down day for the tech sector and broader markets amid worries about an ongoing federal shutdown and trade tensions between the U.S. and China.

Why This Matters for Investors

Enthusiasm regarding the popularity of AI technology has lifted well-known big tech shares. But some of the biggest beneficiaries of booming AI demand have been "pick-and-shovel" plays that provide the underlying hardware and energy data centers need to support AI models.

"Intensifying" shortages in the face of booming demand could mean more upside for Micron, which supplies memory solutions for AI chip leaders like Nvidia (NVDA) and Advanced Micro Devices (AMD), said UBS, which raised its target for Micron to a Street high of $245. Citi, which bumped its target to $240 from $200, said Micron could be next in line to score a big contract with ChatGPT maker OpenAI after recent deals with Nvidia, AMD, and Broadcom (AVGO).

Wedbush analysts lifted their target for Western Digital to $135 from $90, and Seagate to $260 from $175, saying they believe the hard drive makers could see higher pricing and margins through 2026 and beyond "given an underlying shortfall in supply that appears unlikely to be alleviated" for years.

Wall Street has been broadly bullish on all three stocks, with a majority of analysts tracked by Visible Alpha issuing "buy" ratings for Micron, Seagate, and Western Digital, which have pulled ahead of analysts' mean targets with their recent gains.

Shares of Micron and Seagate have more than doubled in value in 2025. Western Digital shares have nearly tripled, putting them among the best-performing stocks in the benchmark index for the year.

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ChatGPT will soon be able to shop for Walmart merchandise on a user's behalf.
Key Takeaways

• Walmart shares soared this week after it announced a commerce partnership with OpenAI that will allow ChatGPT users to buy Walmart merchandise directly through the chatbot.
• OpenAI deals have fueled the latest stretch of the AI rally, but have also raised eyebrows on Wall Street, where an increasing share of investors worry AI is in or approaching a bubble.
• The OpenAI-Walmart partnership could allay some investor fears by boosting OpenAI's revenue, reducing its debt burden and demonstrating AI can deliver tangible returns on investment.

The OpenAI fairy dust that has boosted tech stocks this year is spreading to new sectors.

OpenAI and Walmart on Tuesday announced that ChatGPT users will soon be able to have the chatbot shop at Walmart for them without leaving the app. “Whether planning meals, restocking household essentials, or finding something new, customers can simply chat and buy, and Walmart will handle the rest,” Walmart said in a statement. 

Walmart (WMT) stock rose on the announcement, gaining nearly 5% on Tuesday, its best day since early April. Shares tacked on another 2% on Wednesday to close at a record high and pace Dow Jones Industrial Average gainers for the second straight day. The stock lost ground on Thursday.

For OpenAI—which has been at the center of the deal-making lately that has sparked concerns about a possible AI bubble—the partnership with the world's largest retailer represents an important step in its efforts to prove commercial viability. While the terms of the deal weren't disclosed, OpenAI is likely to receive a commission from sales made on its platform, which could reassure some market watchers concerned about the ability of OpenAI to generate revenue and reduce its debt burden.

Why This Is Important

With stocks trading at record highs despite heightened economic and geopolitical uncertainty, some investors have grown concerned that the AI rally fueling stock gains looks a lot like the Dotcom bubble of the late 1990s. When that bubble burst, the tech-heavy Nasdaq index lost nearly 80% of its value and took about 15 years to recover. 

OpenAI Deals Fuel Rally—and Bubble Concerns

Walmart is the latest company whose stock has skyrocketed on the announcement of a tie-up with the world’s most valuable private start-up. Shares of Broadcom (AVGO) soared nearly 10% Monday after it signed a deal with OpenAI to co-develop and deploy custom AI systems. Advanced Micro Devices (AMD) inked a similar deal with the company last week, and its stock added nearly 25%. Even a simple shoutout at OpenAI’s developers conference is enough to lift shares. 

OpenAI’s recent dealmaking bonanza has sustained the latest leg of a nearly three-year bull market fueled by big tech and the AI boom. But it has also raised red flags on Wall Street, where some worry about the circularity of the deals underpinning lofty stock valuations. 

More than half of global fund managers surveyed by Bank of America in early October said they thought AI was in a bubble, and one-third identified an AI bubble as the stock market’s biggest tail risk, more than inflation (27%) and challenges to the Federal Reserve’s independence (14%).

Those worried about a bubble compare Nvidia’s (NVDA) recent investments in OpenAI and cloud providers like CoreWeave (CRWV) to the vendor financing deals that heralded the bursting of the Dotcom Bubble in 2000. They also note that the AI data center buildout, which has mostly been funded by big tech’s healthy cash flows, is increasingly being financed with debt, exposing the infrastructure boom to the risk of tighter credit conditions.

Though many others on Wall Street argue that bubble concerns are overblown. They point to growing AI demand from global enterprises and governments, as well as tech stock valuations that are still modest compared to the Dotcom era. 

What Walmart Deal Could Mean for OpenAI

OpenAI has forecast it will burn through more than $100 billion before reaching profitability around the turn of the decade. As a result, the start-up is expected to be highly reliant on debt and equity markets to fund the commitments it’s made to Oracle, AMD, Broadcom, and others. 

A successful partnership with a massive retailer such as Walmart could boost OpenAI’s revenue growth, allowing it to take on less debt.

The partnership could also convince other retailers to strike similar deals and integrate their online shops with ChatGPT to reach the chatbot’s more than 800 million weekly users. 

With Tuesday’s stock move, “[Walmart’s] multiple has moved up in anticipation of faster future growth and margins. We agree with this premise,” wrote Morgan Stanley analysts in a note this week. They forecast the partnership could increase Walmart’s EBIT margin by as much as 40%, an improvement that would likely make a strong case for other retailers to follow suit. 

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Retailers are getting ready to sell more goods through AI chatbots and assistants.
Key Takeaways

• Consumers will have more trust in shopping via ChatGPT as brands they know, such as Walmart, begin working with the tool, an analyst told Investopedia.
• Retailers and brands may benefit from partnerships with ChatGPT by reaching new audiences and improving their ability to research and target customers, Canaves said.

Walmart has entered the chat.

This week's news of a partnership between the retail giant and OpenAI, the ChatGPT operator, is a substantial step forward for the encroachment of artificial intelligence into retail. Established retailers like Walmart (WMT) working with ChatGPT should bolster confidence in the tool as a way to make purchases, said Sky Canaves, an analyst covering retail and e-commerce for market research company Emarketer,

“That will go a long way towards ameliorating trust concerns or worries,” Canaves said. “Most consumers trust Walmart.” (It's also lifted Walmart's stock.)

Etsy (ETSY), Shopify (SHOP) and Walmart have all announced partnerships with OpenAI in recent weeks, moves Canaves said highlight younger generations’ growing reliance on AI chatbots and shifts in how consumers shop.The partnerships allow—or will soon allow—people using digital wallets to complete transactions within conversations held with chatbots, the marketplace operators said.

Why This News Matters

As more people use AI-powered chatbots like ChatGPT, it could substantially change the way people think about shopping—and how they tend to connect with brands and retailers, who have for years invested in their brands and e-commerce platforms. This week's news of a Walmart-OpenAI partnership, meanwhile, suggests that things are accelerating.

Nearly 40% of Americans have used generative AI to research products, find deals, come up with gift ideas or otherwise assist with shopping, according to an Adobe (ADBE) survey. More shoppers were beginning to trust these tools before Walmart’s announcement, according to Adobe and Salesforce (CRM). (Salesforce is also working with OpenAI to improve ChatGPT selling options for its clients.)

“Consumers, particularly younger consumers, are using ChatGPT so much,” Canaves said. “They use it more for education, and in their day-to-day lives for all sorts of activities.”

Fewer people appear to be engaging with specific retailers’ AI chatbots, such as Walmart’s Sparky or Amazon’s Rufus, Canaves said. About a quarter of consumers have tried these sorts of tools, with nearly 17% finding them helpful, and 9% saying they don’t offer much benefit, according to Emarketer surveys. 

Still, more brands and retailers will likely focus on conversational commerce, Canaves said. Besides reaching people where they are online, collaborating with groups like ChatGPT may help merchants learn about their customers and personalize pitches, she said.

“ChatGPT users are having conversations that not only span shopping and shopping intent, but a whole range of lifestyle and workplace and educational topics; health care, psychological and mental health topics,” Canaves said. “It’s a very fertile area for getting to understand consumers and their needs, and then targeting them in relevant ways.”

Companies that make consumer goods, meanwhile, may also need to revaluate the way they connect with consumers, Deutsche Bank analysts wrote this week.

"AI's role as a new and powerful intermediary marks a potentially crucial change," they wrote. "Its ability to proactively suggest alternatives, private label offerings, or even niche brands based on perceived value, specific user requirements (e.g., dietary restrictions, budget), or availability could erode traditional loyalties and/or commoditize certain categories."

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Salesforce stock surged after the software company issued a rosy outlook.
Key Takeaways

• Major U.S. equities indexes wavered between gains and losses at midday Thursday as investors digested a flurry of corporate earnings reports. 
• Salesforce shares rose after the customer relationship software maker issued a better-than-expected long-term sales outlook.
• Verisk Analytics shares fell after Rothschild Redburn analysts downgraded the stock.

Major U.S. equities indexes wavered between gains and losses at midday Thursday as investors digested a flurry of corporate earnings reports. The Dow Jones Industrial Average and S&P 500 were little changed, while the Nasdaq was slightly higher.

Salesforce (CRM) led Dow gainers after the cloud-based software firm issued a rosy revenue projection.

J.B. Hunt Transport Services (JBHT) was the top-performing stock in the S&P 500 after stronger-than-expected results, with profit easily surpassing analysts' estimates after successful cost-cutting efforts.

Hewlett Packard Enterprise (HPE) was among the worst-performing stocks in the benchmark index after the company issued fiscal 2026 revenue and profit guidance far below analysts' expectations.

The Travelers Cos. (TRV) was the biggest decliner in the Dow even though the insurer's profit and revenue topped expectations.

Verisk Analytics (VRSK) paced Nasdaq decliners after Rothschild Redburn downgraded the stock to "sell" from "neutral" and slashed its price target.

Gold futures rose to a fresh record. Oil futures and the yield on the 10-year Treasury note were little changed. The U.S. dollar lost ground to the euro, pound, and yen. Prices for most major cryptocurrencies were mixed, with Bitcoin trading lower.

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AI and economic uncertainty are weighing on the U.S. job market, economists say.
Key Takeaways

• Nestle on Thursday offered the latest example of a big employer looking to save money by streamlining its white-collar workforce.
• The company didn't specify how many of the cuts it planned over the next two years would come in the U.S., which recently accounted for 15% of its total headcount.

White-collar employment is taking another hit.

Global food giant Nestle on Thursday said that, as part of a cost-savings push, it would cut about 12,000 white-collar positions.The company in a press release said the cuts would be "across functions and geographies." It reported 277,000 employees worldwide in its last annual report, about half of them non-factory, with some 15% in North America.

"The world is changing, and Nestlé needs to change faster," CEO Philipp Navratil said in a statement. "This will include making hard but necessary decisions to reduce headcount over the next two years."

Why This News Matters

Big tech companies aren't the only ones cutting white-collar jobs, as today's news from global food giant Nestle illustrates. Economists have several thoughts about what's behind the cuts, including general economic concern and AI. In the meantime, one economist sees the U.S. job market as running in "low gear."

The company in an email said that "we are not in a position to give specific numbers or plans for the U.S." Nestle's shares rose in European trading.

Big employers are increasingly cutting into their white-collar workforces, with some commentators discussing a "white-collar recession." Many of those cuts have come at large, high-profile tech companies, including some Magnificent 7 giants.

Economists have offered several reasons, among them a sense that AI will offer opportunities to cut costs and streamline operations. Broader economic wariness, including concerns about shifts in tariff policy that have complicated planning, are also seen as culprits.

U.S. professional employment was little changed year-over-year in August, according to government data; it's fallen over the past 12 months as total nonfarm employment has risen. (Due to the ongoing government shutdown, August is the last month for which numbers are available.)

The U.S. job market is "running in low fire, low hire, low gear this fall," Comerica Bank Chief Economist Bill Adams wrote earlier this month.

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TSMC's stock has climbed over 50% in 2025
Key Takeaways

• Taiwan Semiconductor Manufacturing Co. reported record quarterly earnings that topped analysts' estimates.
• Shares of TSMC climbed to an all-time high Thursday following the news, before paring the early-session gains.

Taiwan Semiconductor Manufacturing Co. (TSM) posted record earnings and lifted its outlook, in what could be taken as another strong signal of AI demand.

The world's largest chip manufacturer posted earnings per share of $2.92 on revenue that surged 41% year-over-year to $33.10 billion in the third quarter, topping analysts' estimates compiled by Visible Alpha.

TSMC CEO C.C. Wei pointed to "robust" AI-related demand for the growth, telling investors on Thursday's earnings call that “conviction in the AI megatrend is strengthening and we believe that demand for semiconductors will continue to be very fundamental,” according to a transcript provided by AlphaSense.

Why This Matters for Investors

Results from TSMC, which makes chips for many of the biggest names in AI chip design like Nvidia and AMD, can be taken as an early sign of robust orders and demand for their AI chips, adding another feather in the hat of AI trade bulls.

TSMC said it sees fourth-quarter revenue of between $32.2 billion and $33.4 billion, and boosted its 2025 revenue growth forecast to the mid-30% range, up from its previous projection of about 30%.

Shares of TSMC climbed to a record high Thursday morning following the news before paring their early gains. The stock has added over 50% in 2025 so far.

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Though cautioning against complacency, large Wall Street banks enjoyed a banner third quarter.
KEY TAKEAWAYS

• Large U.S. banks surpassed earnings expectations with their third-quarter financial results.
• The major financial institutions enjoyed higher revenues from dealmaking and asset management as the U.S. stock market continued surging.
• Some bank executives cautioned against complacency, though, in an uncertain environment.
  

Large U.S. banks, reveling in a market-friendly environment, surpassed third-quarter revenue and earnings expectations this week. At the same time, they emphasized that geopolitical uncertainty requires vigilance to ensure the good times last.

With a frothy stock market boosting dealmaking, corporate lending and returns on asset management and trading, banks ranging from JPMorganChase (JPM) to Wells Fargo (WFC) topped consensus projections while expanding profits from the same period a year ago.

In a research report, UBS noted the results from big banks were "not what the bears wanted." Indeed, most investors praised them, sending shares of the major banks sharply higher in recent sessions.

Why Bank Earnings Are Significant

The financial results of large banks provide important clues on consumer credit trends, the performance of capital markets and the health of the economy overall. Investors are keeping close tabs on banks' earnings reports and comments from their top executives amid uncertainty about the economic outlook and increased market volatility.

A Dose of Caution

Amid the ongoing federal government shutdown and global trade tension, though, some bank executives cautioned against complacency.

Jamie Dimon, JPMorgan's CEO, said third-quarter results reflect a resilient U.S. economy. But a murky outlook persists.

"There continues be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation," Dimon said. "As always, we hope for the best, but these complex forces reinforce why we prepare the firm for a wide range of scenarios."

JPMorgan, the nation's largest bank, saw its third-quarter earnings rise 12% despite flat net-interest income, even as loans and deposits increased. The company's investment-banking unit helped drive the profit gain, with its revenue up 14%.

At Goldman Sachs (GS), profits surged 39% as investment-banking fees rose a whopping 42%. Yet the company reportedly plans to move ahead with more than 1,000 layoffs by the end of the year, with CEO David Solomon noting "conditions can change quickly," requiring strong risk management.

"Longer term, we are prioritizing the need to operate more efficiently," Solomon said.

Still, Strong Customer Health

At Wells Fargo, net interest income exceeded expectations, and the bank unveiled a higher net interest margin target. Charlie Scharf, the bank's CEO, said the company's overall 9% profit gain reflected ongoing momentum across its businesses.

"Spending on debit and credit cards continued to increase, auto loan originations had strong growth from a year ago and total client assets in our wealth and investment management businesses continue to grow," Scharf said, adding that "the financial health of our clients and customers remains strong."

Net earnings at Morgan Stanley (MS), meanwhile, soared 45%, driven by record-high, third-quarter revenue. Equity trading revenue and investment-banking revenue grew 35% and 44%, respectively, accounting for about a third of the firm's business.

News of the day for Oct. 16, 2025

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The earnings season has kicked into high gear this week, with major financial institutions reporting quarterly results that have exceeded Wall Street expectations.

Stock futures are pointing to a higher open for major indexes as investors digest a flurry of corporate earnings reports, while gold continues hitting new highs; Walmart (WMT) shares are higher after closing at record highs the last two days following news of the retailer's collaboration with OpenAI; Salesforce (CRM) shares are gaining after the company issued new long-term revenue projections; Taiwan Semiconductor Manufacturing Co. (TSM) shares are rising as strong AI chip demand continues to fuel sales growth; and Nestlé is laying off 16,000 workers. Here's what you need to know today.

1. Stock Futures Rise, Gold Sets Another Record High

Stock futures are higher as strong earnings reports from banks continue to roll in. Futures tied to the Dow Jones Industrial Average were up 0.2% recently, after the blue chip index closed fractionally lower yesterday. Futures linked to the benchmark S&P 500 and the tech-heavy Nasdaq, both of which finished higher on Wednesday, were up 0.4% and 0.6%, respectively, this morning. Gold was up 1.4% at $4,260 an ounce, as investors continue pouring money into the safe-haven asset amid stock market volatility and economic uncertainty. Bitcoin (BTCUSD) was little changed at $111,600, trading near its lowest levels of the month and well below the record high of $126,000 set early last week. The yield on the 10-year Treasury note, which affects borrowing costs on a array of loans, was at 4.01%, down from 4.04% yesterday.

2. Walmart Hits Record Highs on OpenAI Collaboration

Walmart (WMT) shares are slightly higher in premarket trading after closing at record highs the past two sessions following news the retail giant would team up with ChatGPT developer OpenAI. The collaboration, announced Tuesday, will allow shoppers to discover and buy items via instant checkout directly through the AI platform. The stock has gained 21% so far this year, outpacing broader market returns, as the retailer has benefitted from strong e-commerce sales and demand across income levels amid economic uncertainty. Walmart shares were up 0.1% before the opening bell, after gaining nearly 7% over the previous two sessions.

3. Salesforce Surges on Fresh Revenue Outlook

Salesforce (CRM) shares are surging in premarket trading after the customer relationship software maker announced new long-term revenue targets as part of its annual conference. Salesforce said it expects $60 billion in revenue in 2030, which would reflect an annual growth rate of around 10%. The projections exclude impacts from the company’s $8 billion acquisition of data management software provider Informatica. The fresh outlook comes after the cloud-based software company recently issued current-quarter growth projections that came in below expectations. Salesforce shares, which come into today's session down roughly 30% so far in 2025, were up nearly 6% in recent trading.

4. TSMC Reports Strong Revenue Growth on AI Chip Demand

Taiwan Semiconductor Manufacturing Co. (TSM) reported a huge increase in third-quarter revenue as the chipmaker continued to see strong demand amid the AI spending boom. TSMC posted third-quarter revenue of $33.10 billion, up 41% from the year-ago period and 10% from the second quarter this year. The company is forecasting fourth-quarter revenue of between $32.2 billion and $33.4 billion.  TSMC shares were up 2% in recent premarket trading.

5. Nestlé Plans to Cut 16,000 Jobs

Nestlé announced plans to cut 16,000 jobs over the next two years. About 12,000 of the eliminated will be in white-collar roles, while the remainder will be manufacturing and supply chain jobs. Nestlé said it expects to save CHF 1.0 billion ($1.256 billion) by the end of 2027. The move by new CEO Philipp Navratil comes after the company dismissed its former chief executive in September over an undisclosed relationship with a subordinate. Nestlé shares traded in Switzerland moved sharply higher Thursday.

Source: TradingView.com
Key Takeaways

• Salesforce shares rose in premarket trading Thursday after the software maker issued a better-than-expected long-term sales outlook.
• The stock looks set to open around the 50-day MA after the company's upbeat revenue outlook, potentially setting the stage for a breakout from a descending broadening formation.
• Investors should watch critical overhead areas on the Salesforce chart around $270 and $290, while also monitoring support levels near $230 and $212.

Salesforce (CRM) shares gained ground in premarket trading Thursday after the software maker issued a better-than-expected long-term sales outlook.

The company said it expects revenue to surpass $60 billion in 2030, comfortably ahead of the level forecast by analysts. It also projects revenue growth of above 10% annually for the 2026–2030 fiscal years, boosted by its Agentforce software, which automates customer service tasks and business processes.

Shares of Salesforce, a Dow Jones Industrial Average component, were up 4.8% at $248 in recent premarket trading. Coming into today's session, the stock had lost nearly 30% of its value so far this year amid concerns that competing AI software could slow adoption of the company’s Agentforce platform.

Below, let’s take a closer look at the Salesforce chart and apply technical analysis to identify critical price levels worth watching out for.

Descending Broadening Formation in Play

Since retesting the 200-day moving average (MA) in mid-May, Salesforce shares have traded lower within a descending broadening formation, tagging the pattern’s upper and lower trendlines on several occasions since that time.

More recently, the 50-day MA has provided selling pressure on attempted rallies, while the relative strength index has slipped slightly below its neutral threshold. However, the stock looks set to open around the 50-day MA after the software maker’s upbeat revenue outlook, potentially setting the stage for a breakout from the descending broadening formation.

Let’s point out two critical overhead levels to watch if Salesforce shares rally and also identify support levels worth monitoring if the stock resumes its longer-term downtrend.

Critical Overhead Areas to Watch

A volume-backed breakout above the descending broadening formation’s upper trendline could fuel a move toward $270, currently situated just below the falling 200-day MA. The shares may face overhead resistance in this location near multiple peaks and troughs on the chart spanning from December 2023 to July this year. This area also roughly aligns with the 61.8% Fibonacci retracement level when applying a grid from the May high to August low.

Buying above this level could see the shares climb to around $290. Those who have accumulated the stock during the descending broadening formation may seek to lock in profits in this region near a trendline that connects a range of corresponding trading activity on the chart stretching back to February last year.

Support Levels Worth Monitoring

If the stock resumes its longer-term move lower, investors should keep a close eye on the $230 level. This area could attract buying interest near several prominent lows that formed on the chart between June 2024 and August this year.

Finally, the bulls’ failure to successfully defend this vital level opens the door for a retest of lower support near $212. Bargain hunters could see this location as a value entry point around the stock’s May 2024 gap low.

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As of the date this article was written, the author does not own any of the above securities.